Five-year spectrum outlook 2020-24 The ACMA's spectrum management work program-consultation draft
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Five-year spectrum outlook 2020–24 The ACMA’s spectrum management work program—consultation draft APRIL 2020
Canberra Red Building Benjamin Offices Chan Street Belconnen ACT PO Box 78 Belconnen ACT 2616 T +61 2 6219 5555 F +61 2 6219 5353 Melbourne Level 32 Melbourne Central Tower 360 Elizabeth Street Melbourne VIC PO Box 13112 Law Courts Melbourne VIC 8010 T +61 3 9963 6800 F +61 3 9963 6899 Sydney Level 5 The Bay Centre 65 Pirrama Road Pyrmont NSW PO Box Q500 Queen Victoria Building NSW 1230 T +61 2 9334 7700 or 1800 226 667 F +61 2 9334 7799 Copyright notice https://creativecommons.org/licenses/by/4.0// With the exception of coats of arms, logos, emblems, images, other third-party material or devices protected by a trademark, this content is made available under the terms of the Creative Commons Attribution 4.0 International (CC BY 4.0) licence. We request attribution as © Commonwealth of Australia (Australian Communications and Media Authority) 2020. All other rights are reserved. The Australian Communications and Media Authority has undertaken reasonable enquiries to identify material owned by third parties and secure permission for its reproduction. Permission may need to be obtained from third parties to re-use their material. Written enquiries may be sent to: Manager, Editorial Services PO Box 13112 Law Courts Melbourne VIC 8010 Email: info@acma.gov.au
Contents Foreword 8 COVID-19—our response 9 Key to icons 10 Issues for comment 11 At a glance—2020–21 work program 12 FYSO 2019–23 progress report 19 Part 1—Five-year spectrum outlook 20 Overview of current industry landscape 20 Spectrum uses 21 Wireless (fixed and mobile) broadband, including 5G 21 Private/industry vertical networks 25 Machine-to-machine communications and the Internet of Things 26 Broadcasting services 28 Satellite communications 30 Spectrum for government requirements 31 Spectrum sharing 33 Class licensing and the spectrum commons 34 Amateur radio 36 Part 2—Proposed 2020–21 annual spectrum management work program 37 Priorities and resources 37 Planning 38 Implementing outcomes of WRC-19 38 Major band planning and replanning activities 39 Monitoring 40 600 MHz (617–698 MHz) 40 1900–1920 MHz 41 3.3 GHz (3300–3400 MHz) 41 4.5 GHz (4400–4500 MHz) 42 4.8 GHz (4800–4990 MHz) 42 acma | iii
Contents (Continued) 13 GHz (12.75–13.25 GHz) 43 40 GHz (37–43.5 GHz) 44 46 GHz (45.5–47 GHz) 45 47 GHz (47.2–48.2 GHz) 45 Bands studied under WRC-19 agenda item 1.16 46 Bands being studied under WRC-23 agenda item 1.2 46 Bands being studied under WRC-23 agenda item 1.4 47 Initial investigation 47 ‘Extended MSS L-band’ (1518–1525 MHz and 1668–1675 MHz) 47 2300–2302 MHz 48 Preliminary replanning 48 1.5 GHz (1427–1518 MHz) 48 2 GHz (1980–2010 MHz and 2170–2200 MHz) 50 3700–4200 MHz 51 Replanning 51 850 MHz expansion band (809–824 MHz and 854–869 MHz) 51 900 MHz (890–915 MHz and 935–960 MHz) 52 1800 MHz (1710–1785 MHz and 1805–1880 MHz) in remote areas 53 5.6 GHz (5600–5650 MHz) 53 26 GHz (24.25–27.5 GHz) 54 28 GHz (27.5–29.5 GHz) 54 Optimising established planning frameworks 56 3400–3575 MHz 56 Recent developments 56 Next steps 56 Spectrum management advice and considering out-of-policy requests 56 Public protection and disaster relief (PPDR) in the 4.9 GHz band 56 Broadcasting 57 Recent developments 58 Activities planned for 2020–21 58 Satellite planning 58 Recent developments 59 Activities planned for 2020–21 59 acma | iv
Contents (Continued) Spectrum arrangements for ‘small satellites’ 60 Updating regulatory arrangements for space-based communications systems 60 Ongoing review of space licensing procedures 60 Filing and coordination of Australian satellite systems 60 Updating procedures for submission of Australian satellite networks to the ITU 60 Low interference potential devices 61 Progress achieved 61 Activities planned for 2020–21 61 Amateur radio 62 Activities planned for 2020–21 62 Ongoing review of spectrum planning, assignment and coordination requirements 62 Progress achieved 62 Activities planned for 2020–21 63 Review of spectrum licence technical frameworks 63 Activities planned for 2020–21 63 Spectrum-sharing approaches 63 Progress achieved 63 Activities planned for 2020-21 64 Future band planning priorities 64 Activities planned for 2020–21 64 Forward allocation work plan 65 Purpose of the forward allocation work plan 65 What we are proposing 66 850 MHz expansion band 67 900 MHz 67 1.5 GHz 68 3400–3575 MHz 68 3700–4200 MHz 69 26 GHz 69 28 GHz 70 Allocation priorities and sequencing 71 acma | v
Contents (Continued) Timing considerations 71 Licensing and licensing systems 74 Recent developments 74 Mobile phone jammers in prisons 74 Drone jamming exemption arrangements 74 Activities planned for 2020–21 74 Amateur certificates of proficiency 74 Enabling trials of mobile phone jammers in prisons 75 RNSS repeater trials 75 400 MHz band 75 Review of prohibition declarations and exemption determinations 75 Drone regulation 75 Area-wide apparatus licence 76 Review of non-assigned amateur and outpost licensing arrangements 76 Review of scientific assigned and non-assigned apparatus licensing arrangements 77 Review of efficiency and effectiveness of Accredited Persons scheme 77 Pricing 78 Recent developments 78 Apparatus licence taxes 78 Commercial broadcasting taxes 78 Activities planned for 2020–21 78 Implementation of the government’s Spectrum Pricing Review 78 Commercial broadcasting taxes 79 New EME levy arrangements. 79 Other pricing updates 79 Compliance and enforcement 80 Compliance priorities 80 Recent developments 80 Audit of small cell base stations 80 Licensing integrity 80 Solar inverter suppliers 80 acma | vi
Contents (Continued) Activities planned for 2020–21 81 5G EME compliance 81 Interference 81 International engagement 82 International meetings 2019–20 82 New and ongoing activities planned for 2020–21 82 Appendix A—Sunsetting instruments 84 acma | vii
Foreword Spectrum use continues to evolve rapidly in Australia. The Australian Communications and Media Authority (ACMA) is Australia’s spectrum manager and is responsible for ensuring radiofrequency spectrum is managed in a way that maximises the overall public benefit derived from its use. We are continually monitoring the environment to identify opportunities for improvements in spectrum management arrangements and accommodating new and changed uses of spectrum, while ensuring the continuation of existing uses that are of value to the community. Managing spectrum efficiently and effectively for the benefit of all Australians is a key priority for the ACMA.1 We rely on spectrum users to keep us informed of the way that technology developments, international harmonisation efforts and market changes influence demand for new and existing uses of spectrum, which in turn, informs our priorities for planning and making spectrum available. 2019 was a World Radiocommunication Conference (WRC) year. WRCs are scheduled every three to four years to update the treaty-level Radio Regulations and are the most important international forum for cooperation on the harmonisation of spectrum use. We have commenced work on the identification and implementation of relevant outcomes from the 2019 WRC (WRC-19) in our domestic planning arrangements—these will remain key priorities in 2020–21. In particular, we are testing industry appetite for the possible commencement of replanning work in the 40, 46 and 47 GHz bands. These bands were considered at WRC-19, with interest both from the terrestrial and satellite communications sectors (in the case of the 40 and 47 GHz bands) for broadband use. These bands are currently included in the monitoring stages of our spectrum planning process, but we are seeking industry views on whether they should progress to the initial investigation stage or whether priority should be given to the 1.5 GHz band (also of relevance to both terrestrial and satellite communications interests). Other mid-band spectrum in the 2 GHz and 3.7-4.2 GHz bands is being progressed this year towards a preferred planning option. Additional spectrum releases across low, mid and high band spectrum forms the basis for our allocation work program. These allocations are intended to make additional spectrum available for 4G and 5G services in Australia, delivered via wireless broadband (fixed and mobile) and satellite, and enable a range of uses to be supported under a mix of licensing options. We are progressing the allocation of the 26 GHz and 28 GHz millimetre wave bands, via spectrum and apparatus licensing. Class licensing for satellite services is already available in parts of the 28 GHz band, and class licensing for part of the 26 GHz band for terrestrial uses is expected this year. Additional mid-band spectrum is expected to become available as a result of the work underway to restack and reconfigure the 3.4– 1 ACMA, 2019, accessed 23 April, . 8 | acma
3.5 GHz band. In low band spectrum, an allocation of the 850 MHz expansion band and 900 MHz band is anticipated for late in 2021. In the past year, we have consulted with the radio broadcasting industry about the future delivery of radio in Australia. A key outcome of our engagement with the radio industry is a new framework for our priority-setting and decision-making in radio broadcast planning. We have identified four radio broadcasting planning priorities in relation to AM–FM conversions, coverage enhancements, digital radio channel planning and supporting trials of new radio broadcasting technologies. This consultation on our annual work program will help inform the prioritisation of planning activities for the year. We are continuing work with a range of government spectrum users whose capability requirements continue to evolve, as they access new technologies needed to support law enforcement, national interest, and government service delivery activities. The ACMA has consulted annually with industry about its spectrum management priorities through its five-year spectrum outlook (FYSO) since 2009. Since 2018, we have published a draft FYSO for consultation ahead of settling the final FYSO. We are continuing this approach and, subject to feedback on the draft work program, we are working to publish a final FYSO 2020–24 early in the 2020–21 financial year. The draft FYSO is set out as follows: > At a glance—summarises the ACMA’s proposed activities for 2020–21 > Part 1—provides an overview of the technology, market competition, and policy drivers likely to shape the demand of spectrum over the next five years > Part 2—gives detailed information about the ACMA’s planned work priorities for 2020–21. COVID-19—our response The communications and media sectors are playing a critical role in enabling Australian consumers, businesses and governments to communicate during the COVID-19 pandemic. At a global level, the International Telecommunications Union (ITU) acknowledges the important role of information and communications technologies—of which spectrum is a key enabler—in helping to governments, businesses and individuals cope with the pandemic.2 The ACMA is keen to ensure that its spectrum management arrangements continue to support the Australian communications and media sectors in their response during this period, but acknowledge that the impact of COVID-19 is being felt differently across the industry sectors using spectrum. We are seeing increasing demand for communications connectivity and for spectrum in some sectors, while economic conditions are likely to constrain future spectrum demand in other sectors. Where we have relevant information from the industry, we have reflected it in Part 1. In the current context, we have considered it important to provide our annual work program and outlook to support the planning and response efforts of the communications and media sectors to the COVID-19 pandemic and we seek information from spectrum users about the short, medium and longer-term demand for spectrum use. During the pandemic, we will continue to update our regulatory response and keep spectrum users and the public informed of changes. 2 ITU, 2020, accessed 27 April 2020, . acma | 9
Key to icons FYSO icon Subject area Wireless broadband Satellite Class licensing Internet of Things Radio and television broadcasting Amateur radio Point-to-multipoint Point-to-point Defence Aviation Maritime International interests and engagement Pricing 10 | acma
Issues for comment We invite comments on the draft FYSO 2020-–24 and on the following specific questions: 1. What are the expected impacts of the COVID-19 pandemic on the short- and medium-term capacity of your industry? 2. Do you have any feedback on the ACMA’s approach to its spectrum work program in the current environment? Do you have alternative proposals or priorities? 3. Are there other technology developments or sources of spectrum demand that the ACMA should be aware of in considering spectrum management over the next five years? 4. Do you have any other feedback on the ACMA’s plans for monitoring, initial investigation, preliminary replanning or replanning of bands? 5. Do you have any comments about the ACMA’s approach to forward allocations? acma | 11
At a glance—2020–21 work program The tables below provide a summary of our proposed key spectrum management activities for the 2020–21 financial year. Although the FYSO is prepared on a financial year basis, for ease of interpretation, references to quarters are calendar year quarters: > quarter 1 (Q1): 1 January–31 March > quarter 2 (Q2): 1 April–30 June > quarter 3 (Q3): 1 July–30 September > quarter 4 (Q4): 1 October–31 December. The ‘proposed timelines’ column has: > timing for activities (these may be affected by the progression of other projects) > details of opportunities for consultation and engagement. A summary of our planned spectrum consultations for 2020–21 is at Table 8. Table 1: Planning—major band planning and replanning activities Planning stage Project priorities Proposed timelines Monitoring 600 MHz (617–698 MHz) Continue to monitor domestic and international developments 1900–1920 MHz in these bands to identify usage 3.3 GHz (3300–3400 MHz) trends 4.5 GHz (4400–4500 MHz) 4.8 GHz (4800–4990 MHz) 13 GHz 40 GHz (37–43.5 GHz) 46 GHz (45.5–47 GHz) 47 GHz (47.2–48.2 GHz) Bands studied under WRC-19 agenda item 1.16 Bands being studied under WRC-23 agenda item 1.2 Bands being studied under WRC-23 agenda item 1.4 Initial ‘Extended MSS L-band’ Likely simultaneous review of the investigation (1518–1525 MHz and extended MSS L-band and the 1668–1675 MHz) 1.5 GHz bands 2300–2302 MHz Q4 2020: Following completion of Technical Liaison Group (TLG) process, consultation on possible changes to support 5G 12 | acma
Planning stage Project priorities Proposed timelines Preliminary 1.5 GHz To be determined replanning 2 GHz (1980–2010 MHz Q2–3 2020: Options paper and 2170–2200 MHz) Q4 2020: Planning decision paper 3700–4200 MHz Q2–3 2020: Options paper Q4 2020: Planning decision paper Replanning 850 MHz expansion band Band is being cleared (809–824 MHz and 854– progressively. We continue to 869 MHz) consider options for optimising its use. Allocation timeframes are tied to those of the 900 MHz band 900 MHz (890–915 MHz Allocation timeframes are tied to and 935–960 MHz) those of the 850 MHz expansion band 1800 MHz (1710–1785 Q2–3 2020: Discussion paper MHz and1805–1880 MHz) in remote areas 3400–3575 MHz Q3–4 2020: Finalise restack of incumbent services Q2–3 2020: Consultation on point-to-multipoint apparatus licence arrangements in regional and remote areas Q4 2020 – Q2 2021: If the Minister makes a decision to designate spectrum, conduct activities to convert NBN Co’s apparatus licences to spectrum licences 5.6 GHz Q2–3 2020: Consult on revised arrangements 26 GHz (24.25–27.5 GHz) Q4 2020: Finalise licensing arrangements for services in this band 28 GHz Q4 2020: Finalise licensing (27.5–29.5 GHz) arrangements for services in this band acma | 13
Table 2: Planning—optimising established planning frameworks Planning area Project priorities Proposed timelines 3400–3575 MHz Optimise spectrum and apparatus licence See Table 3: arrangements in band adjacent to 3.6 GHz Forward allocation band work plan Broadcasting Develop and consult on proposals for Q3 2020: Consult licence area plan (LAP) variations in Brisbane Develop and consult on a proposal to vary Q3 2020: Consult the Deniliquin LAP Develop and consult on proposals for Q3 2020: Consult variations in a number of licence areas in NSW3 to enable AM–FM conversions Consult on the digital radio channel plan Q3 2020: Consult (DRCP) for the Gold Coast, taking into account the completion of frequency allotment planning Further consultation on whether variations Q3 2020: Consult to the DRCP for Brisbane are appropriate to improve digital coverage Develop and consult on proposals for Q4 2020: Consult variations to the Remote Central and Eastern Australia Radio LAP Consult on potential for replanning analog Q4 2020: Consult radio services in Perth, following the clearance of Band II television in Bunbury Satellite Consider applications for test and Ongoing demonstration purposes in the 2 GHz band Manage filing and coordination of Ongoing Australian satellite systems Low interference Monitor developments, including updates Ongoing—update potential on low duty cycle 900 MHz changes and 26 planned for Q3 devices (LIPD) GHz (as per planning decisions) 2020 Amateur service Seek industry views on implementation Q2–3 2020: in the frequency issues, including appropriate technical Consult band 5351.5– conditions and in which part of the band the 5366.5 kHz amateur service could be supported 3 This may include a subset of the following areas: Grafton, Taree, Inverell, Moree, Gunnedah, Tamworth, Lismore, Mudgee, Young and Parkes. We are consulting with the licensees to determine indicative timelines and relative priorities. Proceeding with these variations depends on the relevant licensees making timely strategic business decisions on available implementation options. 14 | acma
Planning area Project priorities Proposed timelines Spectrum Ongoing review of the spectrum planning Ongoing planning, technical framework to ensure its currency Q4 2020: Consult assignment and and consistency with current technologies on draft updated coordination and operational practices frequency requirements coordination review work Spectrum Ongoing program of review of technical Ongoing licence technical frameworks below 4 GHz frameworks Spectrum Ongoing consideration of new approaches Q2–3 2020: Paper sharing to spectrum sharing setting out next approaches steps Table 3: Forward allocation work plan Project Proposed timelines—next steps priorities 26 and 28 GHz Q3 2020: Consult on: bands > drafts of the technical framework instruments > coordination and licensing arrangements for new FSS gateway earth stations in the range 27–29.5 GHz Q2–3 2020: Consult on draft allocation instruments for spectrum licences Q3 2020: Consult on taxation and other matters for apparatus licenses in the 26 and 28 GHz bands Q4 2020: Some apparatus licences in 26 and 28 GHz become available for issue Q1 2021: Auction of spectrum licences 850/900 MHz Q 3 2020: Consult on draft reallocation recommendation to Minister 3400–3575 MHz Q3–4 2020: Finalise restack of incumbent services Q4 2020 – Q2 2021: If the Minister makes a decision to designate spectrum, conduct activities to convert NBN Co’s apparatus licences to spectrum licences acma | 15
Table 4: Licensing and licensing systems Project priorities Proposed timelines Trial of mobile phone jammers at Ongoing: Corrective Services NSW Goulburn Correctional Complex commenced a two-year trial on 13 December 2019 under the exemption determination 400 MHz band Finalise the 400 MHz implementation project Review of prohibition declarations Q2–3 2020: Consult on issues paper and exemption determinations Consider facilitating trials of Q2–3 2020: Consult RNSS repeaters Consider changes to regulatory Q2–3 2020: Consult arrangements for counter-drone equipment Review of non-assigned amateur Q2–3 2020: Consult and outpost licensing arrangements with a view to reform Review of the accredited persons Q2–3 2020: Consult with accredited persons scheme on the efficiency and effectiveness of the scheme Q4: Where appropriate, consultation on operational and/or regulatory changes to the scheme Table 5: Pricing Project priorities Proposed timelines Pricing review implementation Q3 2020: Publish response to submissions paper. This paper will outline the work program to implement the Spectrum Pricing Review over 2020 and 2021 Commercial broadcasting tax Ongoing assessment of taxes throughout arrangements 2020–21 Preparation for review of Q3, 2020: Release of the consultation paper Commercial Broadcasting (Tax) Q1 2021: Report to the Minister Act 2017 Ongoing maintenance of the 2020–21 current apparatus licence tax regime for matters like adjusting for inflation 16 | acma
Project priorities Proposed timelines If the Minister directs the ACMA Q2–3 2020: Implementation, with: about implementing new taxation > amendment to apparatus licence tax arrangements so that industry can determinations contribute to the funding of EME research, implementation of new > consultation on changes to spectrum EME levy arrangements. licence taxes > making of amendments Table 6: Compliance and enforcement Project priorities Proposed timelines 5G compliance program to ensure 2020–21 carrier’s compliance with EME standards under their licence conditions and obligations under the Mobile Base Station Deployment Code Compliance activities to manage 2020–21 the risk of interference in two key areas: > unauthorised use of mobile phone repeaters > non-compliant activity in the construction/resources industry Table 7: International engagement Project priorities Proposed timelines ITU-R Study Group 4 block Q4 2020 (21 October – 6 November 2020) meetings ITU-R Study Group 5 block Q3 2020 (7–31 July) meetings Q4 2020 (4–24 November 2020 includes working party 5D) ITU-R Working party 5D meetings Q2–3 2020 (24 June – 1 August) Q4 2020 (7–14 October and 17–19 November) First meeting of the APT TBA (possibly August 2020) Conference Preparatory Group (Asia Pacific) for WRC-23 (APG23-1) acma | 17
Table 8: Consultation plans This table summarises consultations flagged throughout the draft FYSO from July 2020 onwards. This list of consultations is subject to change. Issue Proposed timelines 3400–3575 MHz Q2–3 2020: Consultation on point-to- multipoint apparatus licence arrangements in regional and remote areas Q2–3 2020: TLG to develop arrangements for urban excise areas Q4: Consultation on variation to 3.4 GHz technical framework to support urban excision Develop and consult on proposals for Q3 2020 LAP variations in Brisbane Develop and consult on a proposal to Q3 2020 vary the Deniliquin LAP Develop and consult on proposals for Q3 2020 variations in a number of licence areas in NSW to enable AM–FM conversions 1800 MHz spectrum licence technical Q2–3 2020: Consultation on variation framework review 2.3 GHz spectrum licence technical Q2–3 2020: Consultation on variation framework review Review of prohibition declarations Q2–3 2020: Consultation paper and exemption determinations 26 GHz spectrum licences Q2–3 2020: Consultation on draft allocation instruments Annual update to the LIPD class Q3 2020 licence Area-wide apparatus licence (AWL) Q3 2020 types in the 26 and 28 GHz bands – consult on drafts of the technical framework instruments, coordination arrangements, other relevant matters Review of efficiency and Q2–3 2020 effectiveness of accredited persons scheme Consult on the DRCP for the Gold Q3 2020 Coast, taking into account the completion of frequency allotment planning Further consultation on whether Q3 2020 variations to the DRCP for Brisbane are appropriate to improve digital coverage 18 | acma
Issue Proposed timelines Develop and consult on proposals for Q4 2020 variations to the Remote Central and Eastern Australia Radio LAP Potential for replanning analog radio Q4 2020: Consultation paper services in Perth, following the clearance of Band II television in Bunbury FYSO/Annual work program Q2 2021: Consultation on draft FYSO 2019–23 progress report The FYSO 2019–23 six-monthly progress report was published in February 2020. It shows the status of activities in the most recent FYSO and how our 2019-20 work program is tracking. A 12-month progress report will be published in Q3 2020, around the same time as the final FYSO for 2020–24. We’ll provide regular updates on processes and explanations of changes to plans. acma | 19
Part 1—Five-year spectrum outlook Part 1 takes a broad view of trends in markets, technology and spectrum uses that inform the ACMA’s medium-term planning, allocation and reallocation activities. The ACMA takes account of a range of factors in planning its spectrum management work. We monitor developments in radiocommunications technology, including equipment availability, that influence how spectrum is used. We also consider the broader policy environment, to inform the prioritisation of our spectrum work program. Overview of current industry landscape With over 158,000 radiocommunications licences on issue, representing a diverse range of spectrum uses, demand for new spectrum and changes to existing arrangements for licensees continues to evolve quickly. Two important influences on future demand for spectrum are technology developments that create new use cases and have potential to improve spectrum utilisation and efficiency, and international cooperation on the use of scarce spectrum and orbital resources. International trends driving demand for spectrum include the appetite for wireless broadband, particularly in the context of 5G services, enterprise-based network developments, ongoing commercialisation of Internet of Things (IoT) applications, advances in broadcasting technology, and rapid innovations in satellite technologies and services. We are also seeing a rapid evolution of drones and remotely-piloted aircraft being deployed across private, commercial and government uses. There is also ongoing innovation in radiocommunications technologies that support more efficient spectrum use. Examples include more efficient radiocommunications modulation and coding techniques, and improved antenna technology that provides greater options in the use of high frequency bands. The ACMA; the Department of Infrastructure, Transport, Regional Development and Communications (the Department); Australian industry and government stakeholders participate in international radiocommunications forums to promote and protect Australian interests in spectrum management, including spectrum harmonisation and international frequency coordination. The peak international forum is the International Telecommunication Union’s (ITU) WRC, which reviews and revises the Radio Regulations, the international treaty-level document regarding use of the spectrum and satellite orbits. The last WRC meeting was last held in October to November 2019. Outcomes of WRC-19 will be an input into the ACMA’s domestic spectrum management work, in particular a likely update to the Australian Radiofrequency Spectrum Plan. The next WRC will be held in 2023 (WRC-23) and will consider new frequency allocation and procedural matters across a range of services. 20 | acma
The ACMA’s spectrum planning work program supports the evolution of technical frameworks that support more efficient technologies within an existing use. Over time, adjustments to technical frameworks have freed up additional spectrum for new uses or by new spectrum users. This year’s work program also identifies bands and frequencies where we are updating and optimising technical frameworks to support more efficient technologies and spectrum use. As a wholesale input, the value of spectrum for commercial uses comes from its use in downstream output markets to deliver services to end-users, such as consumers and businesses. Spectrum is a significant determinant of an operator’s competitive ability as it influences network capacity, quality of service as well as the geographic areas where an operator can offer services and entry into new markets. Accordingly, the state of competition in downstream markets can influence the demand for spectrum. The management and allocation of scarce spectrum resources, including the timing of major spectrum allocations, can have a significant impact on the nature of competition in downstream markets that rely on spectrum. In order to promote competition and maximise the public benefit from spectrum, safeguard measures may be considered during the planning and allocation process for specific bands to prevent significant concentration and/or disparities in spectrum holdings between competitors in downstream markets. The ACMA will seek input from stakeholders as part of ensuring the consideration of competition is integrated in the planning and management of spectrum. The actual utility of spectrum is also affected by the interference protection environment. That is why we have a strong continuing focus on compliance priorities directed towards 5G EME compliance and interference management, with a particular focus this year on mobile phone repeaters and interference in the construction and resources industry. The ACMA’s response to these demand pressures for 2020–21 is outlined in more detail in the planning and allocation work stream activities in Part 2. In Part 1 (the five-year spectrum outlook), where we alert stakeholders to the medium and longer-term pressures shaping and informing the overall demand environment for spectrum, we recognise that in the short term, the outlook is likely to be affected by significant uncertainty arising from the response to the COVID-19 pandemic. Spectrum uses Wireless (fixed and mobile) broadband, including 5G The wireless broadband markets are well established, with operators deploying networks in both the mobile and fixed wireless markets. Demand for spectrum to support both mobile and fixed wireless broadband applications has been a major driver for changes in highest-value spectrum use across a range of bands. The fixed wireless market generally provides coverage in locations where it is price competitive against alternatives such as mobile broadband or satellite services. The market comprises a combination of national providers (for example, NBN Co, Optus and Uniti) and regional and specialist providers (for example, Countrytell, Beam Internet, Spirit Telecommunications and Dreamtilt). acma | 21
S&P Global market intelligence estimates for the Australian market that fixed wireless broadband comprises 2.7 per cent of wireless broadband revenue (estimated revenues of $142 million in 2019) share. S&P projected, prior to COVID-19, revenues to remain steady at this percentage over the next 10 years (estimated revenues of $198 million in 2029).4 In contrast, the mobile broadband market has three operators accounting for over 70 per cent of the telecommunications services market. 5 In the past year, 5G services have been planned or deployed in Australia by Optus, Telstra and VHA. IBIS World estimates industry revenues attributed to the mobile industry were $23.9 billion in 2019.6 S&P considers that the key market growth area will be in rural Australia and 5G network deployments in key urban areas. It was expected, prior to COVID-19, that mobile subscription numbers would grow at a compound annual rate of 2.04 per cent from 2019 to 2029.7 Wireless mobile broadband operators have responded to the impacts of the COVID-19 through various measures, such as: > offering bonus data on mobile plans for the month of April 2020 8 > Telstra bringing forward $500 million of its capital expenditure program by six months.9 We anticipate further spectrum will be needed to support the growth in broadband applications and mobile data in the short and medium term. Wireless broadband use cases In planning for future spectrum demand, we recognise three broad categories of wireless broadband use cases and note that network deployments may reflect combinations of these categories. The first category is wide-area subscriber networks, served by ubiquitous base stations operated by one or more service providers—this category could be considered ‘conventional’ telecommunication carrier mobile broadband, or in some cases fixed operations. The second category reflects more limited market subscriber networks over smaller, localised areas, including, but not limited to, fixed wireless broadband and fleet- oriented services. Services provided by Wireless ISPs (WISPs) are a good example of this type of use. Many of the bands that are suitable for fixed wireless access (FWA) are subject to spectrum licensing in the relevant geographical areas. Spectrum licensing arrangements may not be ideal for small and medium enterprises (SME), and apparatus-licensed arrangements are often preferred. There are a number of possible bands and access arrangements at various stages of maturity that may provide 4 S&P Global market intelligence, Australian fiber set for long-term gains, Kagan Research – S&P Global Market Intelligence platform. 5 IBISWorld, Telecommunications Services in Australia, June 2019, p. 19. 6 $37.6 billion multiplied by 63.6%. IBISWorld, Telecommunications Services in Australia, June 2019, p. 7. 7 S&P Global market intelligence, Australian fiber set for long-term gains, Kagan Research – S&P Global Market Intelligence platform. 8 WhistleOut, 2020, accessed 23 March 2020, . 9 Telstra, 2020, accessed 23 March 2020, . 22 | acma
options for SME FWA interests (recognising that not all bands, if implemented, will be suitable for all FWA deployment models). Most notably, these bands are: > 3.4 GHz: arrangements will be developed to make 35–67.5 MHz of spectrum available in regional areas and an extra 175 MHz in remote areas > 3700–4200 MHz: currently under review > 5.6 GHz band (5600–5650 MHz): arrangements in place shared with weather radar > 26 GHz (24.25–27.5 GHz): to be made available for apparatus licensing outside the geographic areas designated for spectrum licensing > 28 GHz (27.5–29.5 GHz): arrangements currently under development. There are also a number of other bands being monitored or under review that may be candidates for new spectrum-sharing approaches. The third category of wireless broadband covers business enterprise services operated by private entities within the confines of their own premises or land estate— for example, a hospital, education precinct or an industrial or transport facility. The rapid development of the next generation of wireless broadband technology, known as 5G, has emerged as a key driver of change to existing spectrum arrangements. This is due to: > the potential for replanning additional spectrum bands to support its deployment > the characteristics of 5G (such as the need to accommodate broader channel bandwidths) > the fact that some of the bands into which 5G will be introduced challenge us to consider new ways to plan and license that spectrum. Reviewing the arrangements in bands that are already licensed for wireless broadband is important to ensure existing allocations are efficient and can cater for new technology developments, such as 5G. The ACMA’s work program includes a number of projects that consider optimising existing planning frameworks. The definition of 5G and related spectrum harmonisation and technology specifications and standards have continued to mature. Work has progressed in the ITU Radiocommunication Sector (ITU-R) to define IMT-202010, and spectrum harmonisation considerations relating to bands that were studied and, in some cases identified, at WRC-19. The 3rd Generation Partnership Project (3GPP) continues to develop 5G-related specifications in Release 15 and Release 16. Spectrum bands supporting wireless broadband use From a spectrum management perspective, 5G uses spectrum across a wide range of frequency bands. This will include: > ‘low-band’ spectrum below 1 GHz, much of which is already used for mobile broadband networks > ‘mid-band’ spectrum between 1 and 6 GHz, some of which is already used for wireless broadband > ’high-band’ spectrum, above 6 GHz, specifically the previously little-used millimetre wave (mmWave) bands.11 10 ITU, 2017, accessed 27 April 2020, . 11 mmWaves span 30 GHz to 300 GHz (that is, a wavelength of 1 cm to 1 mm), however, in the current 5G context, mmWave bands in consideration span from around 24 GHz up to 86 GHz. acma | 23
In addition to considering the use of ‘new’ frequency bands (bands previously unused for wireless broadband), we expect that many of the bands already available for broadband in Australia will be re-farmed over time by incumbent users for 5G technologies. The existing technical frameworks provide flexibility to allow licensees to re-use spectrum and adopt new technologies. However, where appropriate, the ACMA will revise existing technical frameworks to ensure they are suitable for 5G—this work commenced in the 2019–20 period and will continue into 2020–21. Of course, this has to be balanced with the need to manage interference with other licensed services. The ACMA acknowledges the importance of addressing the 5G spectrum needs and is committed to ensuring that Australia is well placed to take advantage of the opportunities offered by 5G, consistent with the government’s 5G strategy.12 The ACMA continues to implement arrangements to support the rollout of 5G services in Australia, across a number of bands. Each of the broad bands identified for wireless broadband (sub 1 GHz, 1–6 GHz, above 6 GHz) requires a specific approach by the ACMA. This is because different considerations apply, such as intrinsic features of the band—for example, propagation characteristics, as well as international regulations and standards, domestic policy, legacy planning and allocation arrangements, and other incumbency factors. Low-band spectrum In the bands below 1 GHz, the ACMA has two primary short-to-medium-term objectives: > working with industry to optimise the efficient configuration of the existing 850 MHz (825–845 MHz and 870–890 MHz) and 900 MHz (890–915 MHz and 935–960 MHz) band allocations, already licensed for mobile broadband purposes, including by securing a 1 MHz downshift of the existing 850 MHz spectrum licences > implementing the existing planning decision to make additional spectrum available for mobile broadband in the 850 MHz expansion band (809–824 MHz and 854–869 MHz). Mid-band spectrum The mid-band between 1 and 6 GHz is currently the focus of near-term 5G deployments. In Australia, the 3400–3700 MHz band has been made available for this use. The ACMA also sees a major opportunity for efficiency gains through the defragmentation of the current 3400–3575 MHz frequency range. Work is underway to implement this, which will require both industry commitment and ACMA assistance to achieve. As well as the 1.5 GHz band (1427–1518 MHz), there are several other potential areas of investigation in the mid-bands. Some stakeholders have indicated interest in planning for private LTE networks in mid-band spectrum, such as 1.5 GHz. Spectrum in the 3700–4200 MHz band has been the subject of considerable interest internationally as well as domestically from large mobile network operators (MNOs) and FWA operators (such as WISPs), with several processes underway considering arrangements in the band. The ACMA is paying close attention to the global environment in this band and has released an options paper to review planning arrangements in the 3700–4200 MHz band, which is discussed in Part 2. 12 Department of Infrastructure, Transport, Regional Development and Communications, 2017, accessed 27 April 2020, . 24 | acma
In addition to the planning and allocation activities currently underway, the ACMA continues to monitor several other bands for possible replanning for 5G wireless broadband services. The bands are identified in the Monitoring section of Part 2 (see Bands being studied under WRC-23 agenda item 1.2 and Bands being studied under WRC-23 agenda item 1.4). High-band spectrum The ACMA’s consideration of high-band spectrum for wireless broadband is focused on the mmWave in the bands above 24 GHz. The ACMA is developing arrangements for fixed and mobile wireless broadband in the 26 and 28 GHz bands. The ACMA will also continue to monitor the following bands that were identified for IMT at WRC-19—40 GHz, 46 GHz (mainly in Region 1 countries) and 47 GHz. Of these, the 40 GHz and 47 GHz bands are the most mature in terms of standardisation and equipment availability. The ACMA acknowledges that the 40 GHz and 47 GHz bands are of significant interest for both terrestrial 5G and satellite broadband services—the United States (US), for example, has established arrangements supporting both services. The ACMA will consider global trends and local circumstances, including domestic and international take-up of mmWave 5G services, in determining whether replanning for possible 5G in the 40 and 47 GHz bands is appropriate. The ACMA notes that the best spectrum management outcomes are likely to be achieved when both bands are considered simultaneously. Private/industry vertical networks Private or integrated networks are expected to become more popular with the increased availability of long-term evolution (LTE) advanced pro and 5G technologies. SNS Telecom & IT13: > observes that the private LTE network submarket is well-established with operational deployments across multiple segments of the critical communications and industrial IoT industries, as well as enterprise buildings, campuses and public venues > expects private networks to continue their upward trajectory beyond 2020, with a spate of ongoing and planned network rollouts—from nationwide public safety broadband networks to various usage scenarios > identifies several key challenges including the smaller cell sizes when compared with legacy networks (for example, Land Mobile Radio (LMR) systems), funding uncertainties, competing technologies and evolving standards environment > made a pre-COVID-19 projection that private network revenues for the Asia–Pacific would reach $12.2 billion in revenues by 2030. Other industries where standalone networks have been used include manufacturing, transportation, airports, utilities, primary industries, and stadiums. Ericsson identifies the two main drivers for growth in private networks as the need for modernising land 13 SNS Telecom & IT, The Private LTE & 5G Network Ecosystem: 2020 – 2030 – Opportunities, Challenges, Strategies, Industry Verticals & Forecasts: Regional forecasts, report, 20 October 2019, pp. 53, 96–99; and SNS Telecom & IT, The Private LTE & 5G Network Ecosystem: 2020 – 2030 – Opportunities, Challenges, Strategies, Industry Verticals & Forecasts: Regional forecasts, spreadsheet, 20 October 2019. acma | 25
mobile radio systems (for example, taxis, trains, ambulances) and industry digitalisation.14 Presently, several network deployment models are in use by industry operators: 1. Using their own equipment and class licensed spectrum to operate. 2. Using their own equipment and spectrum to run their own network (for example, public safety). 3. Having a private network built and designed by a third party (for example, a telecommunications company or network design business) with equipment sourced from vendors (for example, base stations and core network), which is separate to other mobile networks (for example, mining companies). Machine-to-machine communications and the Internet of Things A key element in several private networks to enable automated processes (for example, factories) is machine-to-machine (M2M) communications15 and IoT.16 The IoT also involves unprecedented numbers of wireless and wired interconnections of personal, consumer and industrial devices supporting a range of applications. Ovum forecasts that the number of M2M subscriptions associated with Australian mobile network operators will increase from 4.3 million in 2019 to 5.4 million in 2024.17 IoT is not limited to any specific technology platform and is likely to use frequency allocations across the entire spectrum. For example, 4G and 5G standards have made—or are in the process of making—specific provisions for dedicated IoT service delivery, and dedicated terrestrial IoT technologies have been developed and deployed that usually utilise class-licensed bands. Devices providing industrial metering, switching and/or control (including smart infrastructure) are a subset of IoT communications technologies that have seen substantial deployments in recent years. They require very low data rates and/or very low duty cycles and operate in low-power wide-area (LPWA) networks.18 An international market has emerged for LPWA networks and devices that operate in the 900 MHz band. In Australia, mobile network operators have positioned themselves in the Australian market to offer IoT and M2M services to customers. MNOs have been deploying IoT- specific variants of the 4G standard, such as Narrowband IoT and Category M1, commonly known as Cat-M1. In both cases services are, or are expected to be, largely deployed using existing spectrum management frameworks and established bands. Given the unique capabilities of satellite systems, for example in terms of coverage, multiple companies are delivering or pursuing new space-based IoT services—in some cases enabled through new small satellite technology. Some of these services are being pursued or delivered within established satellite bands in the existing 14 Ericsson, 2019, accessed 27 April 2020, , p. 19. 15 M2M communications are used for automated data transmission and measurement between mechanical or electronic devices using wired and wireless networks. Much of the M2M information is delivered in the form of sparse data, which can come from sensors and other non-IT devices. 16 The interconnection of many devices and objects utilising internet protocols, with or without the active involvement of individuals. This may include laptops, routers, tablets and smartphones, which are integral to operating, reading and analysing the state of IoT devices. 17 Ovum, Ovum Forecaster Service, subscriber-only database, Mobile connectivity – M2M subscriptions, accessed 13 February 2020. 18 IoT Alliance Australia, 2018, accessed 27 April 2020, . 26 | acma
regulatory framework. However, in some cases, enabling satellite IoT may require specific changes to the regulatory regime. Table 9: Bands listed in the LIPD class licence that currently support IoT services Frequency band (MHz) Description 472.0125–472.1125 Telecommand or telemetry transmitters (max power 100 mW EIRP) 0.07–0.119 Telecommand or telemetry transmitters (max power 10 mW EIRP) 0.135–0.160 Telecommand or telemetry transmitters (max power 10 mW EIRP) 0.119–0.135 Telecommand or telemetry transmitters (max power 1.5 W EIRP) 0.160–0.190 Telecommand or telemetry transmitters (see details for limitations) 2400–2450 Telecommand or telemetry transmitters (max power 1 W EIRP) 5725–5795 Telecommand or telemetry transmitters (max power 1 W EIRP) 5815–5875 Telecommand or telemetry transmitters (max power 1 W EIRP) 5795–5815 Telecommand or telemetry transmitters (max power 2 W EIRP) 915–928 Frequency hopping transmitters (max power 1 W EIRP) 2400–2483.5 Frequency hopping transmitters (max power 500 mW EIRP) 2400–2483.5 Frequency hopping transmitters (max power 4 W EIRP) 5725–5850 Frequency hopping transmitters (max power 4 W EIRP) 915–928 Digital modulation transmitters (max power 1 W EIRP) 2400–2483.5 Digital modulation transmitters (max power 4 W EIRP) 5725–5850 Digital modulation transmitters (max power 4 W EIRP) 5150–5250 Radio local area network transmitters (max power 200 mW EIRP) 5250–5350 Radio local area network transmitters (max power 200 mW EIRP) 5470–5600 Radio local area network transmitters (max power 1 W EIRP) 5650–5725 Radio local area network transmitters (max power 1 W EIRP) 59000–63000 Data communication transmitters outdoors (max power 150 W EIRP) 57000–71000 Data communication transmitters indoors (max power 20 W EIRP) acma | 27
Broadcasting services Broadcasting services are delivered using radiocommunications spectrum, including AM and FM frequencies (for radio), UHF and satellite frequencies (for television) and other parts of the spectrum deliver broadcasting services (using mobile broadband and other wireless delivery systems). Commercial radio broadcasting The commercial radio sector comprises an extensive infrastructure base of AM and FM transmitters servicing metropolitan, regional and remote communities via 613 transmitters—125 AM and 488 FM. In recent times, AM–FM conversions have been completed in 19 single-licensee markets. Commercial digital radio is also delivered via a network of shared DAB+ digital radio multiplex transmitters in each capital city, as well as in Mandurah, Western Australia. DAB+ uses spectrum in VHF television Band III. National broadcasting The ABC and SBS operate an extensive high-power network of AM and FM transmitters, which covers metropolitan, regional and remote areas. 19 SBS delivers most of its regional services through retransmissions licensed by third parties such as local councils.20 The ABC and SBS share DAB+ digital transmitters in all capital cities. Compared with commercial radio, the national broadcasters’ radio services face different conditions on coverage and often have different coverage areas. While commercial and community services are restricted to their geographic licence areas in a way that national broadcasting services and radio streaming services are not, licence areas assist in delivering relevant local content and services to local communities. As they are restricted only by power, high-powered national AM services may serve much larger areas than commercial radio broadcasting services. The ABC’s highest power regional AM services provide unique and critical wide-area coverage to regional listeners, including listeners in cars outside of populated areas. Community radio broadcasting The community radio sector is diverse, providing local, community and niche services mainly via FM to metropolitan and regional audiences. Indigenous broadcasting transmissions serve remote communities as well as many regional and urban areas. In the capital cities, there are wide-area community services, as well as more localised services covering sub-metropolitan regions of each city. The community sector transmits through 415 transmitters, with 13 delivering AM services and 402 delivering FM services. A further 133 FM transmitters and 1 AM transmitter is used for temporary community broadcasting. Economic pressures The television and radio broadcasting environment is under pressure. Ongoing technology developments and changing audience preferences are affecting future demand for spectrum. The environment for commercial broadcasters in TV and radio has seen a marked decline of advertising revenues, which is likely to constrain the capacity for future network investment. 19 The ABC’s services are delivered via 707 radio transmitters, 110 providing AM services and 597 providing FM services. 20 Retransmission services do no more than retransmit programs that are transmitted by a national, commercial or community broadcasting service. 28 | acma
Free TV has reported a decline in industry revenue of 9.2 per cent over 2013–18 from $3.88 billion to $3.52 billion. The commercial radio industry experienced a drop of 6.1 per cent in metropolitan advertising revenue ($760.899 million) for the 2019 calendar year, with revenue down 9.4 per cent in the December quarter from the same period in 2018.21 In the quarter to March 2020, metropolitan radio advertising revenue was down 12.3 per cent on the same period last year.22 The COVID-19 pandemic has resulted in a further impact on commercial radio advertising revenue. In April 2020, several radio networks announced cost cutting measures.23 Similarly, commercial television has been affected by a decline in advertising revenue and disruption to content availability due to the shutdown of television production and suspension of major sporting events. Citing these factors, in March 2020, Nine Entertainment and Seven West Media each withdrew their profit guidance for the financial year.24 In April 2020, in response to representations from a number of affected commercial broadcasters seeking relief from transmitter licence taxes due to the impacts of the COVID-19 pandemic, the government made rules that provided a 100 per cent rebate of the commercial broadcasting tax for the 12 months beginning 14 February 2020 and ending 13 February 2021.25 This is discussed further in the Pricing section. Spectrum demand Changing spectrum requirements are needed to support the ongoing evolution of broadcasting services and their audiences. Evolving digital transmission technology and changes in viewer and listener behaviour are altering the modes of delivery and consequently changing the broadcasting demand for spectrum. In recognition of the technological evolution occurring in broadcasting, we have actively supported new technology trials, such as the DVB-T2 trials for television. In radio, the work we have done with the radio industry through the Future delivery of radio, has provided an ongoing transition path for the radio industry to evolve in response to new technologies and changing audience preferences, with the prioritisation of frequency planning arrangements designed to support radio broadcasters in making the best choices about their future service delivery. Our priorities outlined in the report include the continued transitioning of commercial, community and national services in regional areas from AM to FM where spectrum is readily available, arrangements to allow further rollout of digital radio where this is feasible, coverage improvements for national, commercial and community broadcasting where spectrum is available and support for trials of new types of broadcasting technology. 21 Commercial Radio Australia, 2020, accessed 27 April 2020, . 22 Commercial Radio Australia, 2020, accessed 27 April 2020, . 23 Radio Today, 2020, accessed 27 April 2020, . 24 Source: ASX Announcements from Seven West and Nine Entertainment. 25 Federal Register of Legislation, 2020, accessed 27 April 2020, . acma | 29
Satellite communications Satellite communications are experiencing a significant period of technological innovation, and disruption in the provision and delivery of communications and space- based science services. IBIS World estimates revenue for the industry at $5.6 billion in 2020, growing annually at eight per cent over the past five years.26 Globally though, some satellite operators are experiencing difficult financial conditions, that may constrain future network expansion plans and demand for spectrum. The Australian space industry is projected to grow at 7.4 per cent annually over the next five years.27 The Australian Civil Space Strategy 2019–2028 sets a clear path to take the space sector into the next decade and beyond. Key market segments in Australia include: > satellite communications (including broadband) > pay television (for example, Singtel Optus and Foxtel); otherwise known as direct to home (DTH) services > ground station infrastructure which enables uplink, supports launch activities, satellite operation and tracking systems > global navigation satellite services (GNSS) > space technology and manufacturing of high-tech components, nanosatellites, components > other satellite services include space research. Other new satellite business models, which are largely considered emerging (that is, currently not generating significant revenues) but do not have significant operations in Australia, include satellite servicing, platforms, space mining/resource utilisation, situational awareness, in-space research and manufacturing. Low-earth-orbit (LEO) satellites are also being trialled with the intention of using thousands of small satellites to offer an alternative to fibre or towers in regional or rural areas. While trials have commenced, there are currently no commercial services in Australia. The development of lower-cost, miniaturised space hardware (often referred to as nanosats, cubesats or smallsats) and reduced launch costs are supporting growth in the diversity and capability of services delivered by satellite. In some cases, smallsats are allowing commercial broadband business models and services requiring constellations of satellites in non-geostationary orbit that were once cost prohibitive to now be viable. Some proposed non-geostationary orbit broadband systems require the deployment of very large numbers—for example, hundreds or thousands, of satellites. 2019–20 saw multiple launches of satellites supporting these constellations. This changed environment has also increased the opportunity for academic and scientific space missions, often of short duration. Collectively, these environmental changes are driving several spectrum management challenges. Many of these are being addressed, to some extent, on an international basis given the nature of satellite systems. For example, for reasons of economy and equipment availability, short duration smallsat missions often utilise systems operating 26 IBISWorld, Shoot for the stars: Industry revenue lifts off as rising demand creates space for new firms, IBISWorld Industry Report J5545, January 2020, p. 5. 27 Department of Industry, Science, Energy and Resources, 2019, accessed 24 March 2020, , p. III. 30 | acma
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